It will be an interesting week for the pair GBP/USD.
This week we have a meeting of the two central banks, the Federal Reserve meeting on Wednesday and the meeting of the Bank of England on Thursday. Moreover, vote on Brexit is coming. Also, this week will be full of other important economic data.
Today the economic calendar of Great Britain and the United States don’t provide any important news.
The market expects the Fed meeting. In general, the market is not waiting for a rate hike in June. The July rate increase is also unlikely, despite the comments of some members of the FOMC. Therefore, the comments of Janet Yellen will get more importance. If the Fed comments will be soft enough, it will weaken the US dollar.
How to trade
Today, the pair GBP/USD is likely to consolidate in the range of 1.4160 - 1.4240. The short-term downward movement is possible after passing the mark of 1.4160. In this case, the target - 1.4123. The short-term upward movement is possible in the range of 1.4255 - 1.4312. We would buy call options if the pair rises above 1.4255. We would buy put binary options if the pair falls below 1.4160.
Expiry time: 20:00 GMT